Xilinx (NASDAQ:XLNX) versus IPG Photonics (NASDAQ:IPGP) Critical Review

Xilinx (NASDAQ:XLNX) and IPG Photonics (NASDAQ:IPGP) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Earnings & Valuation

This table compares Xilinx and IPG Photonics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xilinx $3.06 billion 7.62 $889.75 million $3.48 26.64
IPG Photonics $1.46 billion 5.09 $404.03 million $7.38 18.93

Xilinx has higher revenue and earnings than IPG Photonics. IPG Photonics is trading at a lower price-to-earnings ratio than Xilinx, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xilinx and IPG Photonics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xilinx 28.76% 35.84% 18.90%
IPG Photonics 19.45% 11.50% 9.94%

Institutional and Insider Ownership

84.6% of Xilinx shares are owned by institutional investors. Comparatively, 64.2% of IPG Photonics shares are owned by institutional investors. 0.2% of Xilinx shares are owned by company insiders. Comparatively, 33.9% of IPG Photonics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Xilinx pays an annual dividend of $1.48 per share and has a dividend yield of 1.6%. IPG Photonics does not pay a dividend. Xilinx pays out 42.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Xilinx and IPG Photonics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating…

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